The startling difference between quayside prices of capelin in Iceland and trhe Faroe Islands has been highlighted – not for the first time – with the matter raised in Iceland’s Parliament.
Figures for the recently concluded capelin season show that Faroese processors pay as much as three times more than those in Iceland for raw material. The Icelandic Seamen’s Union, Sjómannasamband Íslands, states that it’s time for Icelandic fishing companies to explain this substantial price difference.
Quayside prices in Iceland for capelin for freezing averaged 80.64 ISK/kg during the last season, while other landing prices have ranged from 67.64 to 89.48 ISK/kg. The figures presented to Parliament put the Faroese price at close to 250 ISK/kg, while the Union states that its own enquiries indicate that the quayside price in the Faroes is around 220 ISK/kg.
According to the Union, final settlements have yet to be made with crews, and these are required to be completed two months after the end of the season.
‘It should also be borne in mond that smaller volumes were landed in the Faroes, which could lift the price there,’ a Union representative commented.
‘Seamen are waiting for their settlements after the season, but experience shows us that there’s generally a wide gap before it reaches the same levels as in neighbouring countries.’
The Union is urging seamen to bring to an end the current agreements relating to pricing of pelagic species if the price quoted in end-of-season settlements is unacceptable, and to demand a settlement based in a higher raw material proportion than under the current agreements.
‘The debate around the capelin price has highlighted a fundamental question that relates to the Icelandic fishing industry. Who genuinely gets the value of this common resource?’ the Union asks, pointing out that the Faroese quayside price is as much as three times higher than in Iceland.
‘This is a comparison that begs questions, Does the Icelandic price genuinely reflect the market price of capelin? Or is a section of this value being shifted around within the system before settling with fishermen?’ asks Union director Valmundur Valmundsson.
‘If the Icelandic price is normal, then it should be possible to demonstrate this. If it’s not normal, then the systemn needs fixing. The Union’s demand is clear – full transparency in the pricing of seafood products and assurance that those who bring this value ashore are rewarded with a fair share.’
